Ehssan Veiszadeh

Senator Carr also urged both Israel and the Palestinians to stick to the terms of the truce which began on Thursday morning (AEDT).

Since the conflict started on November 14, 161 Palestinians, including dozens of civilians, were killed, while five Israelis died.

He commended Israel and Hamas for their "brave" decision to call an end to hostilities.

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"We've got to acknowledge the steps that Israel and Hamas have taken towards a truce," he told reporters in Canberra.

"We express a hope that out of this we can get some movement ... towards a two-state solution."

Senator Carr rang the Egyptian ambassador to Australia earlier on Thursday and asked him to convey Australia's support and admiration for the leadership role of President Morsi.

"One of the things that stands out is the leadership role of someone who could be a very great figure in Middle Eastern history indeed, and that's President Morsi of Egypt," he said.

"It's interesting that someone produced by the Muslim Brotherhood, becoming the first elected president of Egypt ... would be able so quickly to demonstrate a contribution to peace building in the Middle East."

Senator Carr reiterated Australia's support for a two-state solution between Israel and the Palestinians, "with the talents and the genius of Palestinian people being reflected" next to an Israel living in security.

Hamas should be involved in negotiations towards such a solution.

"I think Palestinian politics would dictate that," Senator Carr said.

Under the terms of the ceasefire agreement, Israel and all Palestinian militant groups agreed to halt all hostilities.

For the Palestinians, that means an end to Israeli airstrikes and assassinations of wanted militants. For Israel, it brings a halt to rocket fire and attempts at cross-border incursions from Gaza.

After a 24-hour cooling off period, it calls for "opening the crossings and facilitating the movement of people and transfer of goods, and refraining from restricting residents' free movement".